Japanese retail sales fell for 3rd straight month amid weak consumer spending

Analysts expect Japan's economy to sharply contract in the first quarter, as lacklustre consumer spending and weakening exports create challenges for policymakers who have already rolled out massive stimulus.

Japanese retail sales fell for the third straight month in February as households kept a lid on expenditure amid the coronavirus emergency, underscoring the fragile nature of the economy's recovery from last year's slump. Analysts expect Japan's economy to sharply contract in the first quarter, as lacklustre consumer spending and weakening exports create challenges for policymakers who have already rolled out massive stimulus. Retail sales lost 1.5% in February from a year earlier, government data showed on Tuesday, a smaller fall than the median market forecast for a 2.8% drop. But it marked the third straight month of declines following January's 2.4% fall and a 0.2% drop in December.